Afton Chemical Continues to Invest in Capabilities to Meet Growing Market Needs in Transmission Fluids and Electric Vehicles

Rhea-AI Summary

Afton Chemical Corporation has completed a $70 million investment in its Sauget, IL plant to enhance Automatic Transmission Fluid (ATF) additive production. This expansion aims to meet the rising demand for electric vehicle (EV) fluids, including hybrid and battery electric vehicles. The company has invested over $500 million globally since 2016 to improve its manufacturing capabilities. The Sauget facility, operational since 1975, is recognized for its high manufacturing standards.

Positive

• Completed a $70 million investment in Sauget, IL plant to enhance ATF additive production.
• Supports growing demand for electric vehicle (EV) fluids.
• Afton has invested over $500 million globally since 2016 to improve capabilities.

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• None.

RICHMOND, Va.--(BUSINESS WIRE)-- Afton Chemical Corporation, a global leader in petroleum additives, announced the recent completion of a $70 MM USD investment in its Sauget, IL Plant’s Automatic Transmission Fluid (ATF) additive production facility.

The investment will help support the growing needs of oil marketers and Original Equipment Manufacturers (OEMs) for next-generation developments in electric vehicle (EV) fluids, including hybrid and battery electric vehicles (HEV, BEV). The improvements will also provide additional capability and capacity to meet continuing quality standards such as IATF 16949.

“We are committed to maintaining best-in-class manufacturing capabilities to better manage and respond to the needs of oil marketers and OEMs in the rapidly evolving EV market,” said Ryan Pannell, VP of Manufacturing. “The investments improve the overall efficiency of our manufacturing footprint to ensure supply continuity for our customers.” With the support of its parent company NewMarket Corporation, Afton has invested over half a billion USD since 2016 in capability and capacity around the world.

“We are proud of the Sauget team’s ability to safely complete this complex project during the past two years. The capability and capacity added to the facility have us well-positioned to meet our customer’s increasing needs,” commented Kevin Steding, Sauget Plant Manager.

Afton Chemical is a global leader in automatic transmission fluid (ATF) additives, resulting from many years of research and development with the world’s major OEMs. Afton leads the way in transmission additives for traditional step-type automatics and newer technologies, such as dual-clutch transmissions (DCT) and continuously variable transmissions (CVT) – and continues the leadership in electric transmissions.

“The rapid pace of change in HEV and BEV development brings additional lubricant demands and opportunities for enhanced performance, neither of which should be overlooked,” said Adam Banks, eMobility Marketing Manager. “Close supplier partnerships are vital to ensure that electrified transmission fluid (ETF) enables OEMs to keep driving powertrain designs forward without being held back. In addition, we continue to invest in new capabilities at our technology centers in the US, UK, China, and Japan for the unique testing and development capabilities necessary for EV product development and technology understanding. Our commitment to electrification and its role in delivering carbon improvement is part of Afton’s multi-faceted plan to make the world a better place.”

Afton’s Sauget, IL Plant has produced additives for the lubricant markets since 1975. The facility is an OSHA VPP Star site and is RC-14001:2008, ISO 14001:2004 by DNV Certification, Inc., and ISO 9001 certified.

About Afton Chemical Corporation:

Afton Chemical Corporation is part of the NewMarket Corporation (NYSE: NEU) family of companies. Afton Chemical Corporation uses its formulation, engineering and marketing expertise to help their customers develop and market fuels and lubricants that reduce emissions, improve fuel economy, extend equipment life, improve operator satisfaction and lower the total cost of vehicle and equipment operation. Afton Chemical Corporation develops and sells an extensive line of unique additives for gasoline and distillate fuels, driveline fluids, engine oils and industrial lubricants. Afton Chemical Corporation supports global operations through regional headquarters located in Asia Pacific, EMEAI, Latin America and North America. Afton Chemical Corporation is headquartered in Richmond, Virginia. For more information, visit www.aftonchemical.com.

Cautionary Note Regarding Forward-Looking Statements:

Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the benefits of the company’s manufacturing expansion and statements about the company’s long-term global growth plans. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden or sharp raw material price increases; competition from other manufacturers; current and future governmental regulations; the gain or loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters; terrorist attacks and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; our inability to realize expected benefits from investment in our infrastructure or from recent or future acquisitions, or our inability to successfully integrate recent or future acquisitions into our business; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A. “Risk Factors” of our 2021 Annual Report on Form 10-K, which is available to shareholders upon request.

You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220712005923/en/

Americas: Lauren Packard on +1 804 788 6081 or Lauren.Packard@AftonChemical.com

Source: Afton Chemical Corporation

FAQ

What recent investment has Afton Chemical Corporation made?

Afton Chemical Corporation completed a $70 million investment in its Sauget, IL plant for ATF additive production.

How does Afton's investment impact electric vehicle fluids?

The investment enhances Afton's ability to meet the rising demand for electric vehicle (EV) fluids, including hybrid and battery electric vehicles.

How much has Afton Chemical invested globally since 2016?

Afton Chemical has invested over $500 million globally since 2016 in improving its manufacturing capabilities.

What is the significance of Afton's Sauget, IL plant?

The Sauget plant has produced additives since 1975 and is recognized for maintaining high manufacturing standards and certifications.